Financial crisis: Western world will become significantly less wealthy - Telegraph:
The free market can be very creative but it can also be immensely destructive. This is one of those points where the scale of destruction is potentially so great that it could set the economy back years.
This is why so many people – and not just the politicians putting the deal together – are warning that if the deal fails entirely we could be facing a second Great Depression.
The big mistake policymakers made in the 1930s was to allow too many banks to fail. This caused such a financial earthquake that it led to a decade of hardship.
The Troubled Asset Relief Program was not a perfect template for dealing with struggling banks. However, to dangle it in front of markets and then snatch it back again was an improbably unwise move.